Alberta · Receivership (court-appointed)
Affidavit of M. Sahdev, sworn May 14, 2021
Affidavit · 14 May 2021
AI summary
A plain-English summary drawn only from this filing: what it is, why it matters, and the parties, amounts and dates it turns on.
What we verified from this filing3 verified
- secured creditorsnote: Balance stated 'exclusive of unbilled legal costs and other preservation costs'; the $7,600,000 figure is the registered/amended mortgage principal ceiling, not the outstanding balance. Personal guarantees of the Loan were also given by individuals Hyoung Joon Yoon, Sung Soo Choi and Eung Chang Kim (per BDC's November 30, 2020 demand letter); these are personal guarantors, not corporate creditors. · page: 3 · as of: 2021-05-13 · amount: 6993686.7 · debtor: P7 Construction Ltd. · creditor: Business Development Bank of Canada (BDC) · currency: CAD · security: Mortgage over the Hotel (Holiday Inn Express & Suites Bonnyville) dated December 15, 2011, principal amount originally $5,900,000, amended by Mortgage Amending Agreement dated March 17, 2015 to a principal ceiling of $7,600,000 (registered principal, not a balance); General Security Agreement dated December 15, 2011 (blanket all-present-and-after-acquired property)
- secured creditorsnote: Related party: 1619904 Alberta Ltd. is a subsidiary of the Borrower (P7 Construction Ltd.) and guarantor of the same BDC debt reported against P7 Construction Ltd. above; not an additive/separate debt. · page: 5 · debtor: 1619904 Alberta Ltd. (guarantor; subsidiary of P7 Construction Ltd.) · creditor: Business Development Bank of Canada (BDC) · currency: CAD · security: Guarantee dated March 17, 2015 with stated Limit of Liability of $7,600,000 (guarantee/liability cap, not a balance); collateral General Security Agreement dated December 15, 2011 securing the guarantee obligations (blanket all-present-and-after-acquired property)
- financial positionnote: Total shareholders' equity is negative ($(515,146)). Non-current liabilities of $914,923 are 'Due to related parties', including $464,923 owed to P7 Construction Ltd. (parent company, non-interest bearing) and amounts owed to other related companies under common control (1772390 Alberta Ltd., 1369790 Alberta Ltd., Ocean Gate Fishery Ltd.). · page: 15 · as at: 2019-06-30 · basis: Prepared in accordance with ASPE (Canadian accounting standards for private enterprises); no auditor's report is included in the pages provided. The affidavit describes these as the most recent financial statements in BDC's possession, referring to them as 'effective as of April 30, 2019', but the statements themselves are dated and headed June 30, 2019. · scope: Entity-only financial statements of 1619904 Alberta Ltd. (the guarantor/subsidiary operating the Hotel under the Licence Agreement); not consolidated with, and does not include, the Borrower P7 Construction Ltd. · currency: CAD · total assets: 432801 · total liabilities: 947947